AD Ports Group said Tuesday it had acquired offshore vessels from E-NAV, for around $200 million, to bolster offshore operations in the Middle East and Southeast Asia.
According to AD Ports, the vessels make up a well-maintained, diversified fleet with an average age of around 9 years, significantly less than the industry average.
All 10 vessels are expected to be delivered in Q4 2023 with financial consolidation taking place from Q1 2024 onwards.
"The acquisitions, from international Offshore Supply Vessel owner and operator E-NAV, encompass a variety of offshore vessel types, including multipurpose supply vessels (MPSVs), platform supply vessels (PSVs), diving support vessels (DSVs) and accommodation workboats (AWB’s), representing an attractive offering, particularly in relation to upcoming major offshore projects in the Middle East where there is a shortage of quality assets," AD Ports said.
AD Port said that the transaction supported AD Ports Group’s strategy to continue to balance its portfolio of maritime businesses with assets and services exposed to different market forces and cycles, thereby limiting its performance volatility, amidst forecasts of an upward trend in the offshore O&G market over the medium-long term.
As part of the acquisition, AD Ports said it would take over well-established contracts with blue-chip clients in the O&G industry, National Oil Companies, and International Oil Companies in Southeast Asia and the Middle East, expecting a utilization of around 95% of the existing contracts for the foreseeable future.
The investment is expected to generate more than US$70 million p.a. in revenue in the next 3-5 years and the transaction would imply a 12-month forward EV/EBITDA of around 5.0x.